Lithia Motors Inc (LAD)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 103.80 | 101.85 | 101.62 | 90.00 | 78.58 | |
| Number of days of payables | days | 3.52 | 3.58 | 3.59 | 4.06 | 4.64 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 103.80
= 3.52
Lithia Motors Inc's number of days of payables has shown a decreasing trend over the past five years, indicating improved efficiency in managing its accounts payable. As of December 31, 2020, the company took approximately 4.64 days to pay its trade creditors, which decreased to 4.06 days as of December 31, 2021. This trend continued with further reductions to 3.59 days by December 31, 2022, 3.58 days by December 31, 2023, and finally to 3.52 days by December 31, 2024.
A decreasing number of days of payables suggests that Lithia Motors Inc is taking less time to settle its outstanding obligations to suppliers, potentially indicating stronger cash flow management and more favorable payment terms. This could lead to improved relationships with suppliers and better operating cash flow efficiency for the company.
Peer comparison
Dec 31, 2024